Step-by-step explanation:
To record the transactions mentioned:
a. Rent collected for the period October 1 to December 31:
On October 1:
Debit: Cash $3,150
Credit: Unearned Revenue $3,150
b. Payment for a two-year insurance premium:
On October 1:
Debit: Prepaid Insurance $1,800
Credit: Cash $1,800
c. Depreciation of the machine purchased on October 1:
Depreciation expense is typically recorded at the end of an accounting period. However, since the annual depreciation amount is given, we can record the depreciation for the three-month period from October 1 to December 31.
On December 31 (or at the end of the period):
Debit: Depreciation Expense $1,275 (($5,100 / 12) * 3 months)
Credit: Accumulated Depreciation $1,275
The accumulated depreciation account is used to track the total depreciation expense for an asset over its useful life.
It's important to note that these entries assume a simplified accounting treatment and do not account for any tax or reporting requirements. It is recommended to consult with an accountant or financial professional for accurate and complete accounting record-keeping.